Is US Economy Slowdown Synonymous To Global Economy Slowdown

Maybe Yes............. Great Depression of the 1930s, 1990-91 ,2001 and then its 2008. Though Americans have seen very less recessions but when they see them, People around the globe too witness with them. The economy of UNITED STATES is the world's largest national economy. Hence any see-saw in it will have direct or indirect impact on the economies of other countries. This time around I've heard news of jobless americans, ousted company CEO's and different related issues. But what makes me more anxious is that, do we Indians have to face the heat.But so far at least there is little evidence that the world economy is falling off a cliff.

The pace of job losses in America has been mild compared with previous downturns, and there are a couple of reasons to suppose it will stay that way. The first is the activism of American policymakers. Congress started throwing money at the problem early, and a second fiscal stimulus is already being discussed . The Fed has slashed interest rates, promised more cuts if the economy stays weak and—perhaps most important—sharply reduced the odds of financial-market catastrophe by extending its safety net to investment banks.

As far as Indian IT/ITES companies are concerned, they may face the blue as maximum of thier revenues comes from American clients. But the SWITCH(Satyam, Wipro, Infosys, TCS, Cognizant, HCL) companies are trying their best to keep thier profit level intact by winning more and more European clients. This year Indian IT industries are projected to grow by 18% which looks pretty healthy.

The US economy slowdown has also sent fuel prices touch skyscrappers as India witnessed a marginal(as termed by ruling party) increase in fuel prices. I can just say, emerging economies will not be worst affected but prolong US slowdown may cast chaos.